Friday, June 10, 2011

Defaulting CPF 3: Singapore government public debt

Few people knew that Singapore government is more broke than many of the PIIGS. Fortunately (to PAP), the counter party of our public debt is our own citizen -- aka CPF obligation. This is not unlike Japan. Hence, PAP can play this game forever, because default is not a problem.

The PIIGS are unfortunately that their counterparty is Goldman Sachs. Hence, they must pay. Below is what CIA factbook describe about Singapore public debt counterparty.